Crypto analyst Ash Crypto has revealed that Bitcoin has entered the ‘thrill’ phase. The analyst further explained what to expect from the flagship crypto moving forward, having entered this phase of the bull run.
What To Expect From Bitcoin In ‘Thrill’ Phase
In an X post, Ash Crypto revealed that Bitcoin is entering the thrill phase. Based on this, he told market participants to expect high volatility and more liquidation. Overall, the analyst remarked that the Bitcoin price trend will be to the upside as it continues to hit new all-time highs (ATHs). He predicts that BTC will rally to as high as $150,000.
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His accompanying chart showed that the thrill phase of the market cycle is when investors and traders may get overexcited about the bull rally and decide to go all in with leverage. However, as Ash Crypto indicated, this could go wrong since there will be a lot of liquidations during this period.
Despite this being a bull market, the Bitcoin price has, at different times, corrected after reaching new highs and flushing out over-leveraged longs in the process. Alex Thorn, Head of Research at Galaxy Research, also explained earlier in the year that bull markets aren’t straight lines up and that significant price corrections are expected.
However, in the long run, the bears get the short end of the stick in a bull run as prices trend upwards. Crypto analyst Ali Martinez recently revealed that over $800 million will be liquidated if Bitcoin rebounds towards $93,000. This is a price level that BTC just reached two days ago as it rallied to a new ATH of $93,400.
The Bitcoin price has since corrected and dropped below $90,000. This was partly due to the US PPI inflation data, which was higher than forecasted. That development has cast some doubts about whether the Fed will be willing to further cut interest rates in December.
More Price Correction In The Short Term?
Ali Martinez suggested that the Bitcoin price could experience further declines in the short term. In an X post, the crypto analyst said that the daily Relative Strength Index (RSI) shows that Bitcoin is in overbought territory, which typically signals a potential price correction ahead.
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This price correction could also happen as Bitcoin investors look to secure profits. Martinez revealed that $5.2 billion in BTC profits have been realized and that the sell-side risk ratio has surged to 0.524%. He warned market participants to stay alert and proceed with caution. Bhutan Government falls among whales that are already securing profits as they recently sold $33 million worth of BTC, just weeks after selling $66 million BTC.
At the time of writing, the Bitcoin price is trading at around $87,780, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com